Insurance Regulator Calls for Partial Solvency II by 2014

Dec. 20 (Bloomberg) -- The European Insurance and
Occupational Pensions Authority said it will issue interim
guidelines for national regulators and called for partial
implementation of its planned European capital rules by 2014.

“Eiopa’s guidelines will ensure that important aspects of
the new regime will be gradually implemented,” Gabriel
Bernardino, chairman of the European Union agency in charge of
drafting the so-called Solvency II risk-based capital rules,
said in an e-mailed statement today. “This interim phase will
allow supervisors and undertakings to be better prepared for the
application of the new regulatory framework.”

Lobbying by German, British and French insurers over the
rules’ impact on long-term savings products has already delayed
the introduction of Solvency II. The regulations, designed to
make firms across the region allocate the same capital reserves
against the risks they take, may not come into force before
2016, industry executives said in third-quarter earnings
presentations.

“If the political decisions will not be taken next year,
the 2016 deadline might be in question,” Bernardino said at a
press conference in Frankfurt today. “The earliest we can do
Solvency II is 2016, as there are lots of milestones to be taken
until then.”

Lack of certainty about the start of Solvency II rules is
challenging the EU’s credibility in international talks as
regulators in Germany and the Netherlands weigh whether to
introduce parts of the rules themselves, jeopardizing attempts
to create a level playing field. Solvency II is being developed
by the European Commission, Eiopa and national regulators.

“The guidelines are for regulators, but they are meant to
implement them in their countries,” Bernardino said. “We don’t
want to implement burden on the industry. These guidelines
should be positive.”